Following yesterday’s dismal reading from the United Kingdom regarding its gross domestic product (GDP), the British pound took a sharp nose-dive against most of its currency rivals. Today’s vote by the Bank of England’s (BOE) Monetary Policy Committee (MPC) could also surprise traders given this latest economic figure.
Also today, the United States will be releasing its latest decision regarding its Federal Funds Rate, which is the short-term interest rate set by the Fed. Rates are expected to remain unchanged, but the statement released in tandem with the rate decision could hint at future monetary policy changes and traders should be on guard against expected volatility.
Here is a roundup of today’s leading events:
9:30 GMT: GBP – MPC Meeting Minutes
As mentioned above, the MPC will release the results of its latest vote on British monetary policies. Not much change is expected from last month’s vote, but yesterday’s shocking GDP figures may put pressure on the MPC to attack economic growth more aggressively.
19:15 GMT: USD – Federal Funds Rate and FOMC Statement
The Federal Open Market Committee (FOMC) will be publishing its latest decision on short-term interest rates in the US; also known as the Federal Funds Rate. Interest rates in the US are forecast to remain unchanged for the foreseeable future, but recent optimism in American economic growth has some speculators anticipating a hawkish statement from the FOMC following its official announcement. Traders should anticipate heavy USD volatility surrounding this event.
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Greg Holden is the Chief Market Analyst at ForexYard. Greg uses his detailed knowledge of fundamental and technical analysis to provide some of the leading market forecasts in the forex world today. A guest lecturer at forex symposiums and Chief Editor of ForexYard's analysis center, Greg brings highly detailed and easy-to-use market analyses to his clientele. He has been published on ForexYard's Trading Blog and affiliate websites. Greg holds degrees in Political Science and Economics from Missouri State University, as well as a Masters degree in Middle Eastern History.
